Kroger Company (KR)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 117,948,000 | 117,875,000 | 108,823,000 | 102,710,000 | 96,508,000 |
| Payables | US$ in thousands | 10,381,000 | 7,119,000 | 7,117,000 | 6,679,000 | 6,349,000 |
| Payables turnover | 11.36 | 16.56 | 15.29 | 15.38 | 15.20 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $117,948,000K ÷ $10,381,000K
= 11.36
Payables turnover is a financial ratio that measures how efficiently a company pays its suppliers. It is calculated by dividing the total purchases a company makes by its average accounts payable during a specific period. A higher payables turnover ratio indicates that a company is paying its suppliers more quickly.
Analyzing Kroger Company's payables turnover over the past five years, we observe a decreasing trend. In 2024, the payables turnover ratio was 11.36, which is lower than the ratios in the previous four years - 16.56 in 2023, 15.29 in 2022, 15.38 in 2021, and 15.20 in 2020.
A decreasing payables turnover ratio could suggest that Kroger Company is taking longer to pay its suppliers compared to previous years. This may indicate potential liquidity issues, strained supplier relationships, or changes in the company's payment policies. Further analysis is recommended to understand the underlying reasons for this trend and its potential impact on Kroger Company's financial health and operational efficiency.
Peer comparison
Feb 3, 2024